Generating $105,600 a year from a portfolio sounds straightforward until you realize the path that requires the least capital up front may quietly eat itself alive over a decade. The yield you choose today sets a trap or a foundation…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Replacing $8,800 a month in income means covering $105,600 a year from your portfolio. That is roughly what a comfortable retirement costs in a mid- to high-cost-of-living metro, or what a dual-earner household nets after taxes on a $150K combined salary. The number is fixed. What changes is how much capital you need to produce it and the trade-offs you accept at each yield level.
With the 10-year Treasury at 4.79% and the federal funds upper bound at 3.75%, the yield environment sets a useful floor for comparison. Anything a dividend investment pays above that number is compensation for taking on equity, credit, or option-writing risk.
Path One: Dividend Growth at Roughly 3.3% A portfolio built around dividend-growth blue chips, often called a Dividend Kings or Aristocrats approach, typically yields 3% to 3.5%. At 3.3%, the math is straightforward: $105,600 divided by 0.033 equals $3,200,000.
You need the most capital here, and that is the point. Dividend growers historically raise their payouts 6% to 9% annually, which means the same shares can generate substantially more income over a decade than they do today. The principal tends to appreciate alongside the market. This is the “sleep at night” tier for investors who value income durability and inflation defense over headline yield.
Path Two: High-Dividend Equity at Roughly 4.3% The SPDR Portfolio S&P 500 High Dividend ETF (NYSEARCA:SPYD) illustrates this middle-of-the-road option. At a recent price of roughly $50 and an annualized forward distribution of roughly $2.17 per share, the fund yields about 4.3%. That translates to $105,600 divided by 0.043, or roughly $2,456,000 in capital.
The high-dividend fund tracks the 80 highest-yielding names in the S&P 500, with top holdings like Iron Mountain, Franklin Resources, CVS Health, Host Hotels, Target, and Altria, each weighted around 1.4% to 1.6%. It manages roughly $7.4 billion in assets and has delivered about 131% in price appreciation over the past decade, not counting distributions. The catch is that it leans heavily into financials, REITs, and utilities, which can lag behind the broader indexes when growth stocks are leading the charge.
Path Three: A Blended High-Yield Portfolio at Roughly 7.7% To cut the capital requirement nearly in half, investors reach into covered call funds and business development companies. A 40% SPYD, 30% XYLD, 30% GBDC blend produces a weighted forward yield in the 7.5% to 7.7% zone. At 7.7%, that is $105,600 divided by 0.077, or roughly $1,371,000.
The Global X S&P 500 Covered Call ETF (NYSEARCA:XYLD) writes at-the-money index calls against S&P 500 exposure. It pays monthly. Its trailing 12-month distributions total $4.33 per share, but the annualized forward figure of $3.73 is a more conservative planning number. The expense ratio is 0.6%. The structural cost: capped upside and a NAV that tends to drift flat over long stretches.
Golub Capital BDC (NASDAQ:GBDC) is the aggressive-tier reality check. Shares trade near $13. Management cut the base quarterly distribution from $0.39 to $0.33 earlier this year as portfolio yields compressed following late-2025 rate cuts. NAV slipped to $14.35, non-accruals rose to 1.4% of fair value, and net investment spread narrowed to 4.5% from 4.8%. The trailing 12-month payout of $1.44 sits above the $1.32 annualized forward, a gap that captures the aggressive-tier risk: high current income, but the distribution and the asset can both shrink.
Why the Cheapest Path Is Rarely the Best One The counterintuitive part: the $1.37 million portfolio at 7.7% pays $105,600 today, but the same dollar amount 10 years from now buys less. CPI sits at 332.8, and inflation has averaged above the Fed’s 2% target for years. A 3.3% dividend-growth portfolio that raises payouts 8% annually doubles its income in nine years. A 7.7% blend with flat or declining distributions stays where it started, or worse. Investors chasing yield often spend down the asset instead of living off its growth (we made the full case for an income-first plan, and against the old 4% withdrawal shortcut, in a free report here).
Three Actions to Take This Week Recalculate your actual spending, not your salary. Most retirees replace 70% to 80% of their pre-retirement income. If your true annual need is $85,000 rather than $105,600, the required capital at 4.3% drops by nearly $500,000. Compare 10-year total returns, not headline yields. Pull the total return chart for SPYD against XYLD and against a dividend-growth ETF over the same window. The compounding gap is usually larger than investors expect. Model the tax hit before you commit. Under the 2026 brackets, a married couple filing jointly hits 22% at $100,800 of taxable income and 24% at $211,400. Qualified dividends from SPYD are taxed at long-term capital gains rates; covered call distributions and BDC payouts are largely ordinary income. In a taxable account, the after-tax yield gap between paths one and three narrows meaningfully. Contact [email protected] for any questions or corrections.
BlackRock Inc. acquired a new stake in Golub Capital BDC, Inc. (NASDAQ:GBDC – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 1,258,215 shares of the investment management company’s stock, valued at approximately $16,206,000. BlackRock Inc. owned 0.48% of Golub Capital BDC at the end of the most recent reporting period.
Other hedge funds also recently made changes to their positions in the company. Main Street Group LTD purchased a new position in shares of Golub Capital BDC in the first quarter valued at $47,000. Fifth Third Bancorp acquired a new position in shares of Golub Capital BDC in the first quarter worth about $68,000. Trust Co. of Vermont acquired a new position in shares of Golub Capital BDC in the second quarter worth about $77,000. Advisory Services Network LLC purchased a new position in Golub Capital BDC in the third quarter valued at about $77,000. Finally, Clearstead Advisors LLC grew its stake in Golub Capital BDC by 48.6% during the 4th quarter. Clearstead Advisors LLC now owns 5,933 shares of the investment management company’s stock valued at $81,000 after purchasing an additional 1,941 shares in the last quarter. Hedge funds and other institutional investors own 42.38% of the company’s stock.
Insider Buying and Selling at Golub Capital BDC In other news, Director Lawrence Golub sold 1,676,387 shares of the business’s stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $13.06, for a total transaction of $21,893,614.22. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Company insiders own 1.40% of the company’s stock.
Golub Capital BDC Stock Performance GBDC stock opened at $12.97 on Friday. Golub Capital BDC, Inc. has a 1 year low of $11.77 and a 1 year high of $14.85. The stock has a market capitalization of $3.37 billion, a price-to-earnings ratio of 19.95 and a beta of 0.39. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.33 and a current ratio of 1.33. The stock’s fifty day moving average is $13.00 and its two-hundred day moving average is $12.85. Golub Capital BDC (NASDAQ:GBDC – Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The investment management company reported $0.34 EPS for the quarter, topping the consensus estimate of $0.33 by $0.01. The business had revenue of $98.53 million during the quarter, compared to analyst estimates of $189.91 million. Golub Capital BDC had a net margin of 21.45% and a return on equity of 9.91%. During the same quarter in the prior year, the firm earned $0.39 earnings per share. On average, research analysts predict that Golub Capital BDC, Inc. will post 1.36 EPS for the current year.
Golub Capital BDC Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Monday, September 14th will be paid a $0.33 dividend. The ex-dividend date is Monday, September 14th. This represents a $1.32 annualized dividend and a dividend yield of 10.2%. Golub Capital BDC’s dividend payout ratio (DPR) is presently 203.08%.
Analyst Ratings Changes A number of equities analysts have issued reports on the company. Royal Bank Of Canada cut their target price on Golub Capital BDC from $15.00 to $14.00 and set an “outperform” rating on the stock in a research report on Thursday, May 7th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Golub Capital BDC in a report on Wednesday, June 24th. Wall Street Zen upgraded shares of Golub Capital BDC from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Zacks Research raised shares of Golub Capital BDC from a “strong sell” rating to a “hold” rating in a report on Monday, July 6th. Finally, Keefe, Bruyette & Woods dropped their target price on shares of Golub Capital BDC from $14.00 to $13.50 and set an “outperform” rating for the company in a research report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $13.90.
View Our Latest Stock Analysis on Golub Capital BDC
Golub Capital BDC Company Profile (Free Report)
Golub Capital BDC (NASDAQ: GBDC) is a publicly traded business development company specializing in providing debt and equity financing solutions to middle-market companies in the United States. Externally managed by Golub Capital LLC, the firm focuses on building a diversified portfolio of senior secured loans, unitranche facilities and second-lien debt instruments designed to support growth, acquisitions and recapitalizations. As a closed-end investment vehicle, GBDC offers investors direct exposure to private credit strategies within a regulated structure.
The company’s core business activities center on originating and managing bespoke financing arrangements for U.S.
Further Reading Five stocks we like better than Golub Capital BDC The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story NVIDIA’s Hugging Face Deal Raises a Bigger Question About Its AI Moat Now Dropping the Dough: Yum! Brands Strategically Trims the Fat These 3 Stock Charts Just Flashed the Dreaded Death Cross Pattern
Receive News & Ratings for Golub Capital BDC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Golub Capital BDC and related companies with MarketBeat.com's FREE daily email newsletter.
SummaryInspired by the horse race in the 2026 Palio di Siena, I made a financial move that I hope will be just as clever as the knight’s move in chess.I decided to close out two positions in my Cupolone portfolio that I wasn’t entirely convinced about, raising cash to reinvest when the opportunity arises.The purpose of this move is to use this liquidity in securities with better overall NAV performance and a greater likelihood of long-term success.Let’s look at the rationale behind this decision along with two other funds exhibiting rather erratic NAV trends during recent years of global growth. Siena, Piazza del Campo on the day of the Palio.
Mauro_Repossini/iStock Unreleased via Getty Images
Piazza del Campo, Siena On August 18, the 2026 Palio dell’Assunta took place. Known throughout the world, the Palio di Siena is a medieval horse race held
5.28K Followers
Analyst’s Disclosure: I/we have a beneficial long position in the shares of BST EOS,ETO,EVT,HTD,PCN,PDI,PTY,RQI,SPE,UTF,UTG,GPIX,JEPI,JEPQ,USOI,WTPI,XYLD, ADX,ARCC,CCAP,FDUS,GBDC,MCI,PEO,RVT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Golub Capital BDC (NASDAQ:GBDC – Get Free Report) and Western Asset Investment Grade Income Fund (NYSE:PAI – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.
Analyst Ratings This is a summary of current ratings and target prices for Golub Capital BDC and Western Asset Investment Grade Income Fund, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Golub Capital BDC 0 2 4 1 2.86 Western Asset Investment Grade Income Fund 0 0 0 0 0.00 Golub Capital BDC presently has a consensus price target of $13.90, indicating a potential upside of 6.68%. Given Golub Capital BDC’s stronger consensus rating and higher probable upside, research analysts plainly believe Golub Capital BDC is more favorable than Western Asset Investment Grade Income Fund.
Earnings and Valuation This table compares Golub Capital BDC and Western Asset Investment Grade Income Fund”s gross revenue, earnings per share and valuation. Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Golub Capital BDC $870.78 million 3.89 $376.65 million $0.65 20.05 Western Asset Investment Grade Income Fund N/A N/A N/A N/A N/A Golub Capital BDC has higher revenue and earnings than Western Asset Investment Grade Income Fund.
Risk and Volatility Golub Capital BDC has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Western Asset Investment Grade Income Fund has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.
Institutional & Insider Ownership 42.4% of Golub Capital BDC shares are held by institutional investors. Comparatively, 19.0% of Western Asset Investment Grade Income Fund shares are held by institutional investors. 1.4% of Golub Capital BDC shares are held by company insiders. Comparatively, 1.0% of Western Asset Investment Grade Income Fund shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Dividends Golub Capital BDC pays an annual dividend of $1.32 per share and has a dividend yield of 10.1%. Western Asset Investment Grade Income Fund pays an annual dividend of $0.63 per share and has a dividend yield of 5.3%. Golub Capital BDC pays out 203.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Profitability This table compares Golub Capital BDC and Western Asset Investment Grade Income Fund’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Golub Capital BDC 21.45% 9.91% 4.39% Western Asset Investment Grade Income Fund N/A N/A N/A Summary Golub Capital BDC beats Western Asset Investment Grade Income Fund on 11 of the 13 factors compared between the two stocks.
(Get Free Report)
Golub Capital BDC, Inc. (GBDC) is a business development company and operates as an externally managed closed-end non-diversified management investment company. It invests in debt and minority equity investments in middle-market companies that are, in most cases, sponsored by private equity investors. It typically invests in diversified consumer services, automobiles, healthcare technology, insurance, health care equipment and supplies, hotels, restaurants and leisure, healthcare providers and services, IT services and specialty retails. It seeks to invest in the United States. It primarily invests in first lien traditional senior debt, first lien one stop, junior debt and equity, senior secured, one stop, unitranche, second lien, subordinated and mezzanine loans of middle-market companies, and warrants.
About Western Asset Investment Grade Income Fund (Get Free Report)
Western Asset Income Fund is a closed-ended fixed income mutual fund launched and managed by Western Asset Management Company. It is co-managed by Western Asset Management Company Limited. The fund invests in the fixed income markets of the United States. It primarily invests in investment grade debt, including government securities, bank debt, commercial paper, and cash or cash equivalents. The fund benchmarks the performance of its portfolio against the Barclays U.S. Corporate High Yield Index and the Barclays U.S. Credit Index. Western Asset Income Fund was formed on March 22, 1973 and is domiciled in the United States.
Receive News & Ratings for Golub Capital BDC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Golub Capital BDC and related companies with MarketBeat.com's FREE daily email newsletter.
SummaryGolub Capital BDC is downgraded from HOLD to SELL due to portfolio deterioration and valuation concerns.Non-accruals and internal rating migrations signal rising credit risk, with portfolio quality eroding faster than peers.GBDC’s 0.33 dividend is just covered by NII; no cushion exists for further deterioration, putting the payout at risk.Valuation appears rich relative to fundamentals, as P/NII is elevated and NAV continues to decline, making risk/reward unattractive.Looking for more investing ideas like this one? Get them exclusively at iREIT®+HOYA Capital. Learn More » Richard Drury/DigitalVision via Getty Images
Investment Thesis and Recommendation In my May update on Golub Capital BDC (GBDC), I kept the HOLD on Golub Capital BDC and set two conditions that would move me to a SELL:
The trend in portfolio quality is disconcerting but
5.74K Followers
Analyst’s Disclosure: I/we have a beneficial long position in the shares of ARCC, BXSL, GBDC, HTGC, TSLX, MSDL, RWAYI, TRIN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
The content of this article reflects my personal views and is provided for informational and educational purposes only. It does not constitute investment advice, financial advice, or a recommendation to buy or sell any securities or financial instruments. While I strive for accuracy, the information presented may contain errors or omissions or be based on sources believed to be reliable but not independently verified. I make no representations or warranties as to the completeness, accuracy, or timeliness of any information presented. This article is not intended to provide, and should not be relied upon for, investment, legal, tax, or accounting advice. The securities and strategies discussed may not be suitable for all investors. Past performance is not indicative of future results. All investments involve risk, including the potential loss of principal. I may hold, or have held, positions in the securities mentioned. I do not receive compensation for writing this article, nor do I intend to influence the price or trading volume of any security discussed. All opinions are subject to change without notice. This content is written strictly in a personal capacity and does not reflect the views of any employer, organization, or associated entity. Readers are strongly encouraged to conduct their own independent research and to consult with a licensed financial advisor before making any investment.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Golub Capital BDC NASDAQ: GBDC reported improved fiscal third-quarter results for the period ended June 30, 2026, as lower realized and unrealized losses offset continued credit stress across the direct-lending market.
Adjusted net income was $0.22 per share, compared with an adjusted loss of $0.18 per share in the preceding quarter. Adjusted net investment income remained unchanged sequentially at $0.34 per share, while adjusted net realized and unrealized losses narrowed to $0.12 per share from $0.52 per share in the prior quarter.
Chief Executive Officer David Golub described the performance as “much better than last quarter, not as good as we’d like, and better than it looks.” He said the quarter’s losses were primarily related to a small number of junior debt and equity investments rather than the company’s core debt portfolio.
Get Golub Capital BDC alerts:
Income, NAV and Distribution Adjusted net investment income of $0.34 per share translated to an annualized adjusted NII return on equity of 9.5%, according to the company. The company paid a $0.33-per-share distribution during the quarter, and its board declared another $0.33-per-share distribution for the fourth fiscal quarter of 2026.
Net asset value per share declined to $14.25 at June 30 from $14.35 at March 31. The company said net investment income fully covered the quarterly distribution, while share repurchases contributed $0.01 per share of NAV accretion. Net realized and unrealized losses reduced NAV by $0.12 per share.
Investment income yield increased about 20 basis points sequentially to 9.9% on an annualized basis. Chief Operating Officer Tim Topicz said the increase reflected stable portfolio spreads and reference rates, as well as some accelerated fee recognition and discount accretion associated with loan payoffs.
GBDC’s annualized borrowing cost rose about 10 basis points to 5.3%, producing an annualized net investment spread of 4.6%. Topicz said the company’s borrowing cost remained among the lowest in the listed BDC peer group.
Credit Performance and Portfolio Activity The company said approximately 87% of its portfolio at fair value remained in its two highest internal performance-rating categories. Non-accrual investments rose slightly to 1.9% of investments at fair value, with the number of non-accrual positions increasing to 20 from 19 in the prior quarter.
Topicz said approximately $0.08 per share of unrealized losses came from markdowns on junior debt and equity positions in two portfolio companies that were taken to non-accrual status or remained on non-accrual during the quarter. The company also recorded approximately $0.04 per share of net realized losses, principally related to the restructurings of RWAM Holdco and Dolphis Meig. Those realized losses were more than offset by reversals of unrealized losses in the same investments, according to management.
GBDC also recognized $4 million of net realized gains from the exit of equity investments in two portfolio companies.
At June 30, the company’s portfolio totaled $8.2 billion across 424 borrowers and 51 industry subsectors. Its top 10 investments accounted for 13% of the portfolio, while software remained its largest industry exposure at 26%.
During the quarter, GBDC made $13 million in new investment commitments, reflecting slow repayments and management’s preference for accretive share repurchases. Of those commitments, 94% were senior secured debt investments. New investments carried a weighted average rate of 8.9%, including a 5.2% weighted average spread.
Across Golub Capital, the investment team originated nearly $3 billion of commitments during the second calendar quarter. The firm closed on 1.5% of reviewed deals, with a weighted average loan-to-value ratio of roughly 45%, according to Senior Managing Director Rob Tuchscherer.
Software Review and AI Exposure Management said it completed a credit-by-credit re-underwriting of its software portfolio to assess potential disruption from artificial intelligence. The review considered factors including revenue models, product criticality, data moats, regulatory complexity and customer switching costs.
GBDC also retained a third-party consulting firm, at the manager’s expense, to assess product-displacement and end-user-workflow risks. The company’s internal assessment found that less than 10% of its software portfolio faced elevated AI disruption risk, while the consultant concluded that fewer than 3% faced elevated risk.
Golub said AI was not the sole factor behind challenged software credits, citing potential issues such as acquisition integrations. However, he said AI would continue to be a meaningful factor in separating stronger and weaker software companies.
Balance Sheet, Repurchases and Market Outlook GBDC ended the quarter with $4.6 billion of debt, $3.7 billion of net assets and net debt-to-equity leverage of 1.23 times, down slightly from the previous quarter. The company reported approximately $2 billion of liquidity, including unrestricted cash and undrawn revolver capacity.
In May, the company issued $500 million of five-year unsecured notes that were swapped to a rate of SOFR plus 218 basis points. After quarter-end, GBDC extended the maturity of its syndicated corporate revolver to July 2031. The facility retained about $2 billion of commitments and includes an accordion provision that could increase capacity to $3 billion.
During the quarter, GBDC repurchased 1.1 million shares at a weighted average price of $12.90 per share, which management said represented an approximately 10% discount to March 31 NAV. The Golub Capital Employee Grant Program Trust also bought about $31 million, or 2.4 million shares, for incentive compensation purposes. Golub Capital affiliates now hold roughly 8% of shares outstanding.
Looking ahead, Golub said the direct-lending market has become more lender-friendly since the start of the year, though private equity-backed M&A activity remained below normal levels. He said spreads on new deals were generally 25 to 50 basis points higher, with some improvement in terms and leverage levels.
Golub also said he expects elevated credit stress to remain an industrywide headwind and lead to greater dispersion among private-credit managers. He said the company expects increased loan repayments to give it more flexibility to pursue new investments while continuing share repurchases and maintaining leverage objectives.
About Golub Capital BDC (NASDAQ:GBDC)Golub Capital BDC NASDAQ: GBDC is a publicly traded business development company specializing in providing debt and equity financing solutions to middle-market companies in the United States. Externally managed by Golub Capital LLC, the firm focuses on building a diversified portfolio of senior secured loans, unitranche facilities and second-lien debt instruments designed to support growth, acquisitions and recapitalizations. As a closed-end investment vehicle, GBDC offers investors direct exposure to private credit strategies within a regulated structure.
The company's core business activities center on originating and managing bespoke financing arrangements for U.S.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Golub Capital BDC Right Now?Before you consider Golub Capital BDC, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Golub Capital BDC wasn't on the list.
While Golub Capital BDC currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
MarketBeat just released its list of the 7 hottest IPOs expected to hit Wall Street in 2026. See which companies are preparing to go public and why investors are watching closely.
Golub Capital BDC (GBDC - Free Report) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +3.03%. A quarter ago, it was expected that this business development company would post earnings of $0.36 per share when it actually produced earnings of $0.34, delivering a surprise of -5.56%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Golub Capital BDC, which belongs to the Zacks Financial - SBIC & Commercial Industry industry, posted revenues of $187.73 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.81%. This compares to year-ago revenues of $218.34 million. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Golub Capital BDC shares have lost about 5.5% since the beginning of the year versus the S&P 500's gain of 9.4%.
What's Next for Golub Capital BDC?While Golub Capital BDC has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Golub Capital BDC was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.33 on $190.04 million in revenues for the coming quarter and $1.36 on $774.45 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - SBIC & Commercial Industry is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Main Street Capital (MAIN - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This investment firm is expected to post quarterly earnings of $1.00 per share in its upcoming report, which represents a year-over-year change of +1%. The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level.
Main Street Capital's revenues are expected to be $143.13 million, down 0.6% from the year-ago quarter.
NEW YORK--(BUSINESS WIRE)--Golub Capital BDC, Inc., a business development company (Nasdaq: GBDC), today announced its financial results for its third fiscal quarter ended June 30, 2026. Except where the context suggests otherwise, the terms “we,” “us,” “our,” and “Company” refer to Golub Capital BDC, Inc. and its consolidated subsidiaries. “GC Advisors” refers to GC Advisors LLC, our investment adviser. SELECTED FINANCIAL HIGHLIGHTS (in thousands, except per share data) J.
AlTi Global Inc. bought a new position in shares of Golub Capital BDC, Inc. (NASDAQ:GBDC – Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm bought 96,554 shares of the investment management company’s stock, valued at approximately $1,222,000.
Several other large investors have also added to or reduced their stakes in GBDC. Main Street Group LTD bought a new stake in shares of Golub Capital BDC during the first quarter valued at approximately $47,000. Fifth Third Bancorp bought a new stake in shares of Golub Capital BDC in the first quarter worth about $68,000. Advisory Services Network LLC bought a new stake in shares of Golub Capital BDC in the third quarter worth about $77,000. Clearstead Advisors LLC lifted its position in shares of Golub Capital BDC by 48.6% in the fourth quarter. Clearstead Advisors LLC now owns 5,933 shares of the investment management company’s stock worth $81,000 after buying an additional 1,941 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. lifted its position in shares of Golub Capital BDC by 104.0% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 6,447 shares of the investment management company’s stock worth $87,000 after buying an additional 3,287 shares in the last quarter. Hedge funds and other institutional investors own 42.38% of the company’s stock.
Analysts Set New Price Targets GBDC has been the subject of several research analyst reports. Wall Street Zen cut Golub Capital BDC from a “hold” rating to a “sell” rating in a report on Sunday, April 19th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Golub Capital BDC in a report on Wednesday, June 24th. Oppenheimer reiterated an “outperform” rating and set a $14.00 target price on shares of Golub Capital BDC in a research report on Wednesday, May 6th. Zacks Research raised shares of Golub Capital BDC from a “strong sell” rating to a “hold” rating in a report on Monday, July 6th. Finally, Royal Bank Of Canada reduced their price target on shares of Golub Capital BDC from $15.00 to $14.00 and set an “outperform” rating on the stock in a research report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $14.00.
View Our Latest Stock Report on GBDC
Golub Capital BDC Price Performance NASDAQ:GBDC opened at $12.95 on Tuesday. The firm has a market capitalization of $3.37 billion, a price-to-earnings ratio of 16.82 and a beta of 0.39. The company has a debt-to-equity ratio of 1.25, a current ratio of 2.20 and a quick ratio of 2.20. The business has a 50 day simple moving average of $12.91 and a 200-day simple moving average of $12.93. Golub Capital BDC, Inc. has a 1 year low of $11.77 and a 1 year high of $15.55.
Golub Capital BDC (NASDAQ:GBDC – Get Free Report) last released its earnings results on Monday, May 4th. The investment management company reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.36 by ($0.02). The company had revenue of ($5.28) million for the quarter, compared to the consensus estimate of $201.71 million. Golub Capital BDC had a net margin of 24.64% and a return on equity of 10.20%. During the same period in the prior year, the firm posted $0.30 EPS. Equities analysts forecast that Golub Capital BDC, Inc. will post 1.36 EPS for the current year.
Golub Capital BDC Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Monday, June 29th. Investors of record on Monday, June 15th were given a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a yield of 10.2%. The ex-dividend date of this dividend was Monday, June 15th. Golub Capital BDC’s dividend payout ratio is 171.43%.
Golub Capital BDC Company Profile (Free Report)
Golub Capital BDC (NASDAQ: GBDC) is a publicly traded business development company specializing in providing debt and equity financing solutions to middle-market companies in the United States. Externally managed by Golub Capital LLC, the firm focuses on building a diversified portfolio of senior secured loans, unitranche facilities and second-lien debt instruments designed to support growth, acquisitions and recapitalizations. As a closed-end investment vehicle, GBDC offers investors direct exposure to private credit strategies within a regulated structure.
The company’s core business activities center on originating and managing bespoke financing arrangements for U.S.
Further Reading Five stocks we like better than Golub Capital BDC The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding GBDC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Golub Capital BDC, Inc. (NASDAQ:GBDC – Free Report).
Receive News & Ratings for Golub Capital BDC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Golub Capital BDC and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEAmova Asset Management Americas Inc. Has $105.78 Million Stock Position in Taiwan Semiconductor Manufacturing Company Ltd. $TSM
NEXT HEADLINE »AlTi Global Inc. Makes New Investment in Establishment Labs Holdings Inc. $ESTA
NEW YORK--(BUSINESS WIRE)--Golub Capital BDC, Inc., a business development company (NASDAQ: GBDC, www.golubcapitalbdc.com) (“GBDC”), announced today that it will report its financial results for the quarter ended June 30, 2026 on Monday, August 3, 2026 after the close of the financial markets. Golub Capital BDC, Inc. will host an earnings conference call at 10:00 a.m. (Eastern Time) on Tuesday, August 4, 2026 to discuss its quarterly financial results. All interested parties may register to par.
Investors in Golub Capital BDC, Inc. (GBDC - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the May 15, 2026 $10 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Golub Capital shares, but what is the fundamental picture for the company? Currently, Golub Capital is a Zacks Rank #3 (Hold) in the Financial - SBIC & Commercial Industry that ranks in the Bottom 16% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 37 cents per share to 36 cents in that period.
Given the way analysts feel about Golub Capital right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Golub Capital BDC offers a 10.5% yield and trades at a 15% discount to NAV, presenting a compelling risk-reward profile. GBDC's portfolio is 92% first-lien, senior secured loans, diversified across 52 industries, with a conservative average loan-to-value ratio. Non-accruals remain low at 1.3% of cost, and management's disciplined underwriting and selective deal closure underpin portfolio quality.
I see compelling value in floating-rate preferred shares and baby bonds, especially as credit spreads widen and many now trade at discounts to call value. Recent market volatility and higher interest rates have created attractive entry points in select REITs, BDCs, preferred shares, and baby bonds. I've allocated a significant portion of my portfolio to preferred shares and baby bonds in March 2026.
Two popular BDCs offer sky-high yields and deep discounts to NAV after the recent sector-wide sell-off. One is a very attractive "Buy," while I am avoiding the other one. I detail how to sort the wheat from the chaff when analyzing deep value BDC opportunities like GBDC and FSK.
March review of the RIG portfolio highlights 6 dividend raises and 2 cuts among 38 payers, with a forward yield of 6.3%. Key raises, include ENB (5.2%), WEC (6.7%), CVX (4.1%), HSY (6%), EQIX (10%), and SHEL (3.9%), with a Rose Recommendation given for owning each one. LYB and GBDC both cut dividends; LYB is recommended for exit due to poor earnings, while GBDC is held as a speculative buy.
Golub Capital BDC (NASDAQ:GBDC – Get Free Report) and Runway Growth Finance (NASDAQ:RWAY – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.
Institutional & Insider Ownership 42.4% of Golub Capital BDC shares are owned by institutional investors. Comparatively, 64.6% of Runway Growth Finance shares are owned by institutional investors. 1.4% of Golub Capital BDC shares are owned by company insiders. Comparatively, 1.0% of Runway Growth Finance shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Dividends Golub Capital BDC pays an annual dividend of $1.32 per share and has a dividend yield of 10.4%. Runway Growth Finance pays an annual dividend of $1.32 per share and has a dividend yield of 19.2%. Golub Capital BDC pays out 105.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Runway Growth Finance pays out 143.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility and Risk Golub Capital BDC has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, Runway Growth Finance has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.
Profitability This table compares Golub Capital BDC and Runway Growth Finance’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Golub Capital BDC 38.57% 10.37% 4.58% Runway Growth Finance 24.79% 11.52% 5.69% Valuation and Earnings This table compares Golub Capital BDC and Runway Growth Finance”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Golub Capital BDC $870.78 million 3.84 $376.65 million $1.25 10.16 Runway Growth Finance $137.33 million 1.81 $34.05 million $0.92 7.49 Golub Capital BDC has higher revenue and earnings than Runway Growth Finance. Runway Growth Finance is trading at a lower price-to-earnings ratio than Golub Capital BDC, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings This is a breakdown of recent ratings for Golub Capital BDC and Runway Growth Finance, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Golub Capital BDC 0 1 3 1 3.00 Runway Growth Finance 1 4 2 0 2.14 Golub Capital BDC currently has a consensus price target of $14.38, suggesting a potential upside of 13.19%. Runway Growth Finance has a consensus price target of $9.00, suggesting a potential upside of 30.62%. Given Runway Growth Finance’s higher possible upside, analysts clearly believe Runway Growth Finance is more favorable than Golub Capital BDC.
Summary Golub Capital BDC beats Runway Growth Finance on 11 of the 17 factors compared between the two stocks.
About Golub Capital BDC (Get Free Report)
Golub Capital BDC, Inc. (GBDC) is a business development company and operates as an externally managed closed-end non-diversified management investment company. It invests in debt and minority equity investments in middle-market companies that are, in most cases, sponsored by private equity investors. It typically invests in diversified consumer services, automobiles, healthcare technology, insurance, health care equipment and supplies, hotels, restaurants and leisure, healthcare providers and services, IT services and specialty retails. It seeks to invest in the United States. It primarily invests in first lien traditional senior debt, first lien one stop, junior debt and equity, senior secured, one stop, unitranche, second lien, subordinated and mezzanine loans of middle-market companies, and warrants.
About Runway Growth Finance (Get Free Report)
Runway Growth Finance Corp. is a business development company specializing investments in senior-secured loans to late stage and growth companies. It prefers to make investments in companies engaged in the technology, life sciences, healthcare and information services, business services and select consumer services and products sectors. It prefers to investments in companies engaged in electronic equipment and instruments, systems software, hardware, storage and peripherals and specialized consumer services, application software, healthcare technology, internet software and services, data processing and outsourced services, internet retail, human resources and employment services, biotechnology, healthcare equipment and education services. It invests in senior secured loans between $10 million and $75 million.
Receive News & Ratings for Golub Capital BDC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Golub Capital BDC and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEGivaudan SA (OTCMKTS:GVDNY) Receives Average Rating of “Hold” from Analysts
NEXT HEADLINE »Royal Bank Of Canada Raises Suncor Energy (NYSE:SU) Price Target to $89.00
NEW YORK--(BUSINESS WIRE)--Golub Capital BDC, Inc., a business development company (NASDAQ: GBDC, www.golubcapitalbdc.com), announced today that it will report its financial results for the quarter ended March 31, 2026 on Monday, May 4, 2026 after the close of the financial markets. Golub Capital BDC, Inc. will host an earnings conference call at 11:00 a.m. (Eastern Time) on Tuesday, May 5, 2026 to discuss its quarterly financial results. All interested parties may participate in the conference.
HB Wealth Management LLC reduced its holdings in shares of Golub Capital BDC, Inc. (NASDAQ:GBDC – Free Report) by 50.4% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 123,645 shares of the investment management company’s stock after selling 125,754 shares during the period. HB Wealth Management LLC’s holdings in Golub Capital BDC were worth $1,678,000 as of its most recent SEC filing.
A number of other large investors have also recently bought and sold shares of the business. Comprehensive Money Management Services LLC grew its holdings in Golub Capital BDC by 7.8% during the 3rd quarter. Comprehensive Money Management Services LLC now owns 12,500 shares of the investment management company’s stock worth $171,000 after acquiring an additional 900 shares during the period. Colton Groome Financial Advisors LLC grew its holdings in Golub Capital BDC by 9.0% during the 3rd quarter. Colton Groome Financial Advisors LLC now owns 11,078 shares of the investment management company’s stock worth $152,000 after acquiring an additional 913 shares during the period. Truist Financial Corp grew its holdings in Golub Capital BDC by 5.6% during the 3rd quarter. Truist Financial Corp now owns 19,603 shares of the investment management company’s stock worth $268,000 after acquiring an additional 1,035 shares during the period. Keel Point LLC grew its holdings in Golub Capital BDC by 2.7% during the 2nd quarter. Keel Point LLC now owns 39,845 shares of the investment management company’s stock worth $584,000 after acquiring an additional 1,039 shares during the period. Finally, Geneos Wealth Management Inc. grew its holdings in Golub Capital BDC by 2.4% during the 3rd quarter. Geneos Wealth Management Inc. now owns 45,085 shares of the investment management company’s stock worth $617,000 after acquiring an additional 1,049 shares during the period. 42.38% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In A number of analysts have weighed in on GBDC shares. Royal Bank Of Canada started coverage on Golub Capital BDC in a report on Friday, April 17th. They set an “outperform” rating and a $15.00 price target for the company. Keefe, Bruyette & Woods decreased their price target on Golub Capital BDC from $15.00 to $14.00 and set an “outperform” rating for the company in a report on Friday, February 6th. Lucid Cap Mkts upgraded Golub Capital BDC to a “strong-buy” rating in a research note on Thursday, January 15th. Capital One Financial set a $15.00 target price on Golub Capital BDC in a research note on Thursday, January 15th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Golub Capital BDC in a research note on Friday, March 27th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus price target of $14.50.
Read Our Latest Analysis on GBDC
Golub Capital BDC Stock Performance Shares of GBDC opened at $13.29 on Friday. The company has a debt-to-equity ratio of 1.25, a current ratio of 2.24 and a quick ratio of 2.24. The stock has a 50-day moving average of $12.57 and a 200-day moving average of $13.30. The company has a market cap of $3.50 billion, a PE ratio of 10.63 and a beta of 0.40. Golub Capital BDC, Inc. has a one year low of $11.77 and a one year high of $15.63.
Golub Capital BDC (NASDAQ:GBDC – Get Free Report) last issued its earnings results on Wednesday, February 4th. The investment management company reported $0.38 EPS for the quarter, meeting the consensus estimate of $0.38. The company had revenue of $110.18 million during the quarter, compared to the consensus estimate of $208.89 million. Golub Capital BDC had a return on equity of 10.37% and a net margin of 38.57%.During the same period last year, the business posted $0.42 EPS. On average, equities research analysts predict that Golub Capital BDC, Inc. will post 1.44 EPS for the current fiscal year.
Golub Capital BDC Cuts Dividend The company also recently announced a quarterly dividend, which was paid on Monday, March 30th. Stockholders of record on Friday, March 13th were paid a $0.33 dividend. The ex-dividend date was Friday, March 13th. This represents a $1.32 annualized dividend and a dividend yield of 9.9%. Golub Capital BDC’s dividend payout ratio (DPR) is currently 105.60%.
About Golub Capital BDC (Free Report)
Golub Capital BDC (NASDAQ: GBDC) is a publicly traded business development company specializing in providing debt and equity financing solutions to middle-market companies in the United States. Externally managed by Golub Capital LLC, the firm focuses on building a diversified portfolio of senior secured loans, unitranche facilities and second-lien debt instruments designed to support growth, acquisitions and recapitalizations. As a closed-end investment vehicle, GBDC offers investors direct exposure to private credit strategies within a regulated structure.
The company’s core business activities center on originating and managing bespoke financing arrangements for U.S.
Featured Articles Five stocks we like better than Golub Capital BDC Want to see what other hedge funds are holding GBDC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Golub Capital BDC, Inc. (NASDAQ:GBDC – Free Report).
Receive News & Ratings for Golub Capital BDC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Golub Capital BDC and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEFortinet, Inc. $FTNT Shares Bought by HB Wealth Management LLC
NEXT HEADLINE »HB Wealth Management LLC Has $1.70 Million Stake in Western Digital Corporation $WDC
NEW YORK--(BUSINESS WIRE)--Golub Capital BDC, Inc., a business development company (Nasdaq: GBDC), today announced its financial results for its second fiscal quarter ended March 31, 2026. Except where the context suggests otherwise, the terms “we,” “us,” “our,” and “Company” refer to Golub Capital BDC, Inc. and its consolidated subsidiaries. “GC Advisors” refers to GC Advisors LLC, our investment adviser. SELECTED FINANCIAL HIGHLIGHTS (in thousands, except per share data) .
Golub Capital BDC (GBDC - Free Report) came out with quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -6.41%. A quarter ago, it was expected that this business development company would post earnings of $0.38 per share when it actually produced earnings of $0.38, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Golub Capital BDC, which belongs to the Zacks Financial - SBIC & Commercial Industry industry, posted revenues of $188.13 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 7.02%. This compares to year-ago revenues of $213.89 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Golub Capital BDC shares have added about 1.7% since the beginning of the year versus the S&P 500's gain of 5.6%.
What's Next for Golub Capital BDC?While Golub Capital BDC has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Golub Capital BDC was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.36 on $198.64 million in revenues for the coming quarter and $1.44 on $803.95 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - SBIC & Commercial Industry is currently in the bottom 15% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Morgan Stanley Direct Lending Fund (MSDL - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.
This company is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents a year-over-year change of -13.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Morgan Stanley Direct Lending Fund's revenues are expected to be $88.29 million, down 13% from the year-ago quarter.
Golub Capital BDC's portfolio has some weaknesses and sector risks, but I trust management's strong track record, especially in software lending. Non-accruals and underperforming assets have risen, with 2.2% of investments materially below expectations and spreads continuing to compress. Dividend coverage is tight. NII barely covers payouts, and another dividend cut may be possible if trends persist.
Golub Capital BDC remains a Hold as portfolio quality deteriorates but largely tracks broader BDC sector trends. Nonaccrual loans rose to 1.4% (fair value), and PIK income increased to 9%, signaling some credit stress. GBDC's software exposure (26% of portfolio) is mostly first lien, with only 8% facing elevated AI disruption risk.
Golub Capital BDC cut its dividend by 15% in Q1 '26, improving dividend coverage to 100% in Q2 '26 amid portfolio contraction and rising non-accruals. GBDC's portfolio shrank 3.5% year-over-year, with interest income and net investment income declining 12% Y/Y and 13% Y/Y respectively, driven by high loan repayments and compressing yields. Non-accruals doubled year-over-year to 1.4% at fair value, but the BDC is not facing systematic underwriting failures in its SaaS portfolio.
The BDC sector has been hit hard since July 2025. However, I think the tide may be about to turn with a bright future ahead for some companies in the sector. I share which BDC names I think are poised to outperform moving forward.
Income-focused investors comparing high-yield options to mainstream dividend funds encounter a familiar gap. VanEck BDC Income ETF (NYSEARCA:BIZD) pays a distribution yield near 13%, which would generate roughly $26,000 a year on that balance, while a mainstream dividend fund like the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) yields closer to 3.4%. BIZD sits in the corner of the market most retirees never reach: a fund of publicly traded business development companies that lend to middle-market borrowers shut out of bank financing.
The fund and how it earns its yield BIZD holds roughly 25 business development companies regulated under the Investment Company Act of 1940. These firms originate floating-rate loans to private companies and pass most of their net investment income through to shareholders as dividends. The ETF concentrates that exposure in a few names: Ares Capital at about 14%, Blue Owl Capital at roughly 9%, plus FS KKR Capital, Main Street Capital, and Golub Capital BDC. About 36% of the portfolio is implemented through a total return swap on the MVIS US BDC Index, collateralized by roughly 35% in U.S. Treasury bills.
The return engine is straightforward. BDCs collect interest on senior secured loans tied to short-term rates, and BIZD distributes that income quarterly. The most recent payment was $0.4818 per share for Q1 2026, an increase from the $0.4177 average across 2025. Total assets sit near $1.6 billion.
What the strategy has actually delivered The income side delivers exactly what it promises, but the total return story tells a completely different tale. Year to date, BIZD has stumbled roughly 8%, and it is down about 12% over the past year, leaving shares hovering around $13. Look at the five-year window, and the fund managed a 28% total return. Meanwhile, SCHD surged ahead with a 51% return over the same period, and a massive 237% over ten years compared to BIZD’s 118%.
Imagine a 68-year-old retiree with $200,000 in cash, hunting for income. They are going to judge this entire strategy by that massive performance gap.
An investor pulling a hefty 13% cash distribution definitely pocketed the yield, but a SCHD holder enjoyed a smaller yield alongside significant price appreciation. Volatility is another major factor to weigh. BIZD plummeted about 50% during the March 2020 credit panic before finally clawing its way back alongside the leveraged-loan market.
The tradeoffs investors take on Fee Stacking: VanEck’s direct management fee for BIZD is 0.40% (contractually capped). The gross expense ratio (which includes Acquired Fund Fees and Expenses, or AFFEs, from the underlying BDCs) sits right at 9.69%, though major financial data providers (like Seeking Alpha) display a trailing expense ratio of 12.86% due to shifting underlying fee structures. Tax Treatment: Accurate. BDC distributions are treated as ordinary income (non-qualified dividends) because BDCs operate as Regulated Investment Companies (RICs). Rate and Credit Sensitivity: Spot on for the trend, though the exact figures require a minor tune-up. The effective Federal Funds rate sits at 3.64% (down from its 5.33% peak, a drop of over 150 basis points from the tightening high). FS KKR Capital (FSK) slashed its dividend from $0.70 to $0.48 in February and cut it again to $0.42 in May. NAV Erosion: Accurate. Seeking Alpha analysis frequently highlights that BIZD’s structural price decline is tied to underlying BDCs distributing more than their net-asset-value gains over long horizons. Where it fits BIZD targets income generation through equity-like drawdowns, offering concentrated private credit exposure with ordinary-income tax treatment, best suited for tax-advantaged accounts like IRAs. A retiree who utilizes an IRA and allocates 5% to 10% of their income sleeve to private credit matches the core design of this product. Realize that capital appreciation and rock-solid principal stability are not features of this strategy. For lower yields at a fraction of the cost, a simple dividend equity ETF works better. If you want direct exposure without the heavy fund-of-funds fee stack, individual BDCs like Ares Capital or Blackstone Secured Lending are cleaner alternatives.
NEW YORK--(BUSINESS WIRE)--Golub Capital BDC, Inc. (the “Company,” “we,” “us” or “our”), a business development company (Nasdaq: GBDC), announced that it has priced an underwritten public offering of $500 million in aggregate principal amount of 6.250% notes due 2031 (the “Notes”). The Notes will mature on June 1, 2031 and may be redeemed in whole or in part at the Company’s option at any time prior to May 1, 2031, at par plus a “make-whole” premium, and thereafter at par.
Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, Santander US Capital Markets LLC, SMBC Nikko Securities America, Inc., Truist Securities, Inc., Capital One Securities, Inc., MUFG Securities Americas Inc., RBC Capital Markets, LLC, Regions Securities LLC and SG Americas Securities, LLC are acting as joint book-running managers for this offering. BNP Paribas Securities Corp., CastleOak Securities, L.P., CIBC World Markets Corp., Comerica Securities, Inc., FNB America Securities LLC, Goldman Sachs & Co. LLC, Lucid Capital Markets, LLC, Morgan Stanley & Co. LLC, Oppenheimer & Co. Inc., Raymond James & Associates, Inc. and U.S. Bancorp Investments, Inc are acting as co-managers for the offering. The offering is expected to close on May 27, 2026, subject to customary closing conditions.
The Company intends to use the net proceeds from this offering to repay a portion of the outstanding indebtedness under the Company’s senior secured revolving credit facility with JPMorgan Chase Bank, N.A. (the “JPM Credit Facility”). However, the Company may re-borrow under the JPM Credit Facility or borrow under the Company’s unsecured revolving credit facility with GC Advisors LLC for general corporate purposes, which may include investing in portfolio companies in accordance with the Company’s investment strategy.
Investors are advised to carefully consider the investment objective, risks, charges and expenses of the Company before investing. The preliminary prospectus supplement dated May 19, 2026 and the accompanying prospectus dated March 28, 2025, each of which have been filed with the Securities and Exchange Commission (the “SEC”), contain this and other information about the Company and should be read carefully before investing.
The pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release are not offers to sell any securities of the Company and are not soliciting an offer to buy the notes in any jurisdiction where such offer and sale is not permitted.
The offering may be made only by means of a preliminary prospectus supplement and an accompanying prospectus. Copies of the preliminary prospectus supplement and the accompanying prospectus may be obtained by calling Wells Fargo Securities, LLC at 1-800-645-3751, J.P. Morgan Securities at 212-834-4533, Santander US Capital Markets LLC at 1-855-403-3636, SMBC Nikko Securities America, Inc. at 1-888-868-6856 or Truist Securities, Inc. at 1-800-685-4786.
ABOUT GOLUB CAPITAL BDC, INC.
The Company is an externally-managed, non-diversified closed-end management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. The Company invests primarily in one stop and other senior secured loans to middle-market companies that are often sponsored by private equity investors. The Company’s investment activities are managed by its investment adviser, GC Advisors LLC, an affiliate of the Golub Capital LLC group of companies (“Golub Capital”).
ABOUT GOLUB CAPITAL
Golub Capital is a market-leading, award-winning direct lender and experienced private credit manager. The firm specializes in delivering reliable, creative and compelling financing solutions to companies backed by private equity sponsors. Golub Capital’s sponsor finance expertise also forms the foundation of its Broadly Syndicated Loan and Credit Opportunities investment programs. Golub Capital nurtures long-term, win-win partnerships that inspire repeat business from private equity sponsors and investors.
As of April 1, 2026, Golub Capital had over 1,000 employees and over $90 billion of capital under management, a gross measure of invested capital including leverage. The firm has offices in North America, Europe, Asia and the Middle East. For more information, please visit golubcapital.com.
FORWARD-LOOKING STATEMENTS
Some of the statements in this press release constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements may include statements as to the Company’s notes offering , the expected net proceeds from the offering, and the anticipated use of the net proceeds of the offering. In addition, words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this press release involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in “Risk Factors” and elsewhere in our annual report on Form 10-K and our other filings with the SEC. Other factors that could cause actual results to differ materially include: changes in the economy, financial and lending markets and geopolitical environment; changes in the markets in which we invest; changes in the interest rate environment and its impact on our business and our portfolio companies; the impact of elevated levels of inflation and its impact on our portfolio companies and the industries in which we invest; future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities) and conditions in our operating areas, particularly with respect to business development companies or regulated investment companies; and other considerations that may be disclosed from time to time in our publicly disseminated documents and filings.
We have based the forward-looking statements included in this press release on information available to us on the date of this press release, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
